For savvy, budget-conscious travelers, planning a vacation or business trip has always involved comparing prices and seeking out deals. However, now travelers must also ensure that the online businesses they use are legitimate and trustworthy.

AI is transforming the travel industry. While it may make some aspects of planning faster and easier, it also means that scammers are honing and developing new and increasingly complex strategies to dupe consumers. Such AI-driven tactics as fake online reviews and fraudulent booking websites make it increasingly challenging for travelers to distinguish legitimate businesses from fraudsters.

SmartCustomer, an independent reviews platform that tracks customer feedback patterns, released a comprehensive guide on online travel scams in the age of AI. Its findings shape what follows: the specific tactics scammers are using right now, and what the red flags are to watch out for.

Fake Online Reviews

Fraudulent online reviews create a particularly significant challenge for travel planners. Customer feedback can be an important resource for travelers when booking flights, transportation, hotels, and tours. According to SmartCustomer, scammers now use AI to quickly generate large volumes of positive reviews, boosting credibility or burying authentic criticism.

“Generative AI has made it exceedingly difficult to distinguish a legitimate experience from a fake one,” says Michael Lai, CEO of SmartCustomer. “Travelers now have to re-evaluate how they verify information online.” 

As consumer trust erodes, travelers are seeking platforms that provide authentic customer experiences and prioritize transparency. Review sites like SmartCustomer work to address this directly, combining automated detection with human moderation to verify reviews before allowing feedback to be published.

Fake or Doctored Travel Websites

An increase in fraudulent websites presents another significant threat to travelers. Scammers use AI-powered tools to mimic known and trusted travel operators’ branding and imagery. For example, travelers’ online searches for bookings might lead them to a site that uses authentic-looking website layouts and glowing customer reviews, which dupe customers into believing they’re real and trustworthy. 

Unfortunately, AI-fabricated visual content is also on the rise. For example, fraudsters use AI-generated imagery sophisticated photo editing tools to create accommodations that look nothing at all like their online listings. Fraudsters might use AI tools to transform outdated rooms into elegant, modern spaces or even fabricate ocean views in a hotel far from the shore. Travelers often discover the truth only after arriving at their destination.

Phishing Scams

Phishing is another threat. It’s more convincing because it’s increasingly personalized to potential victims’ preferences and needs. In this type of scam, a fraudster works to get consumers to share sensitive data, such as login credentials or payment information. 

“Travelers might receive emails promoting limited-time travel offers or urgent text messages,” says Lai. “The messages often make you feel like you’re out of time, and that offers will expire or reservations will get canceled unless acted upon immediately.”

In many cases, scammers create a sense of legitimacy through professional language and branding they’ve replicated from legitimate platforms. 

Pricing Manipulation

Pricing manipulation is another increasing concern. For this type of scam, operators might advertise uncommonly low room rates or inexpensive airfares. But moments before checkout, unsuspecting customers might be hit with hidden fees, such as service charges or price increases.

Unauthorized Charges

Some issues may arise after a customer books and pays, in the form of unauthorized charges. Travelers who experience this type of fraud report charges associated with failed reservations or services they never received. Automated customer service systems might also make it difficult, if not impossible, to reach a human representative, which often means consumers can’t resolve issues and problems.

Ghost Bookings

“Ghost bookings” are one of the most harmful types of fraud. In this scheme, consumers book and pay for travel bookings. The arrangements appear authentic and legitimate. That is, until it comes time for the travelers to use the arrangements, when they discover there is no record of their reservation. Because third-party intermediaries are often in charge of both reservations and payment, recovering lost funds can be time-consuming and challenging.

Protecting Yourself Against Travel Fraud

These various types of travel industry frauds can mean significant financial consequences for consumers. The number of fraud reports has remained relatively stable in recent years. However, the amount of lost funds has increased substantially. This means that scammers are becoming increasingly effective at causing victims to suffer greater financial losses. 

The best way for travelers to reduce risk levels is to exercise greater caution when booking travel. One of the most effective safeguards is to book directly (for example, directly on the airline, car rental, hotel, or property websites). To protect yourself:

• Type in website addresses manually instead of clicking on URLs in emails or social media advertisements.
• Verify customer service numbers through official company websites. 
• Exercise caution if you receive unsolicited messages and emails demanding immediate action. 
• Use credit cards (versus money transfer apps or wire transfers), which provides additional protection through fraud safeguards and chargeback rights.
• Confirm reservations directly with travel providers.
• Research businesses through established review platforms and cross-check reviews across trusted sources.

Because fraud relies heavily on urgency and rash decisions, it’s critical to slow down and verify information before booking. A bit of preventive action and awareness can help prevent a trip from becoming a costly error.